Brown resigns as Labour leader

Gordon Brown this evening announced his resignation as Labour party leader. He also revealed that formal talks were beginning between his party and the Liberal Democrats to examine a possible Lib-Lab coalition to form the next government.

His announcement came outside Downing Street. Mr Brown said he was asking the Labour Party to call a leadership election in which he would play no part. He said he hoped the new leader would be in place in time for the autumn party conference.

He also said he was to press ahead with "formal discussions" with the Liberal Democrats after the request from Mr Clegg. In a statement in Downing Street, Mr Brown said: "The reason that we have a hung parliament is that no single party and no single leader was able to win the full support of the country. As leader of my party I must accept that as a judgment on me. I therefore intend to ask the Labour Party to set in train the processes needed for its own leadership election."

"I would hope that it would be completed in time for the new leader to be in post by the time of the Labour Party conference. I will play no part in that contest, I will back no individual candidate."

It came at the end of a day of high political drama, with the Tories having left power-sharing talks with the Liberal Democrats, declaring "further progress" had been made towards deciding if David Cameron could seal a deal to take him to Number 10.

Shadow foreign secretary William Hague, speaking after 90 minutes of negotiations at the Cabinet Office in Whitehall, said: "We have made further progress in our meeting with the Liberal Democrats this morning.

"We are now going to report back to David Cameron again, and have meetings with our parliamentary colleagues. The negotiating team are working really well together."

The Lib Dems also said good progress had been made.

Earlier, Mr Clegg urged the British people to "bear with us". He said: "I don't think a prolonged period of uncertainty is a good thing. That's why we want to arrive at a decision as soon as possible. But I hope people equally understand that it would be better to get the decision right rather than rushing into something which won't stand the test of time."

He added: "Throughout this process, we continue to be guided by our ambitions and objectives of bringing stability to the British economy."

Prime Minister Gordon Brown this morning met Business Secretary Lord Mandelson, Schools Secretary Ed Balls and deputy Labour leader Harriet Harman at Number 10.

It had appeared, prior to this evening's announcement, that Mr Brown had not given up hopes of retaining power after he held a secret meeting with Mr Clegg.

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